Revenue
$60.00M
2021
Valuation
$8.30B
2021
Growth Rate (y/y)
200%
2021
Funding
$1.90B
2021
Valuation: $8.30B in 2021
Bubble size corresponds to valuation.
Lacework was last valued at $8.3B after raising $1.3B in a November 2021 round led by Sutter Hill Ventures, Altimeter Capital, D1 Capital Partners and Tiger Global Management.
Lacework was originally incubated at Sutter Hill Ventures, the same firm that incubated Snowflake—Sutter Hill MD Stefan Dyckerhoff was the company's original CEO, while Sutter Hill's entrepreneur-in-residence Vikram Kapoor joined as technical co-founder.
Other investors in the company include Dragoneer, Snowflake Ventures, Coatue, Franklin Templeton and Counterpoint Global, Morgan Stanley’s investment wing.
Overall, private cybersecurity companies are comparable on valuation multiple, when adjusting for amount of revenue and their overall growth rate. Wiz and Lacework are roughly comparable as end-to-end cloud security platforms and are at 80x and 92x valuation/revenue multiples respectively (2021 data).
Scenarios: $720M to $14.6B ARR by 2026
To evaluate Lacework's potential trajectory, we've modeled multiple scenarios examining possible revenue outcomes through 2026. These projections incorporate various growth rates and market conditions, considering both conservative and optimistic paths for the cloud security platform's expansion.
| 2021 Revenue ($M) | $60M | ||
|---|---|---|---|
| 2021 Growth Rate (%) | 200.00% |
Lacework demonstrated remarkable growth in 2021, reaching $60M in revenue with a 200% growth rate, reflecting strong market demand for cloud security solutions. This rapid expansion was fueled by aggressive sales team growth and increased average deal sizes targeting enterprise customers.
| Multiple | Valuation |
|---|---|
| 1x | $60M |
| 5x | $300M |
| 10x | $600M |
| 15x | $900M |
| 25x | $1.5B |
Based on 2021 revenue of $60M, valuations span from $60M at 1x to $1.5B at 25x multiple. Notably, the actual 2021 valuation of $8.3B represents a much higher ~138x multiple, reflecting strong investor confidence and premium positioning in the high-growth cloud security market.
| 2026 Growth Rate | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| 10.0% | $60M | $149M | $306M | $493M | $654M | $720M |
| 20.0% | $60M | $151M | $317M | $534M | $755M | $906M |
| 45.0% | $60M | $155M | $345M | $644M | $1.1B | $1.5B |
| 95.0% | $60M | $163M | $404M | $901M | $1.9B | $3.6B |
| 200.0% | $60M | $180M | $540M | $1.6B | $4.9B | $14.6B |
| 200.0% | $60M | $180M | $540M | $1.6B | $4.9B | $14.6B |
| 200.0% | $60M | $180M | $540M | $1.6B | $4.9B | $14.6B |
| 200.0% | $60M | $180M | $540M | $1.6B | $4.9B | $14.6B |
| 200.0% | $60M | $180M | $540M | $1.6B | $4.9B | $14.6B |
Revenue projections span from a conservative $720M at 10% growth to an ambitious $14.6B at 200% growth by 2026, representing a 12x to 243x increase from 2021 levels. This wide range reflects both market uncertainty and Lacework's significant expansion potential in the cloud security space.
| 2026 Growth Rate | 1x | 5x | 10x | 15x | 25x |
|---|---|---|---|---|---|
| 10.0% | $720M | $3.6B | $7.2B | $10.8B | $18B |
| 20.0% | $906M | $4.5B | $9.1B | $13.6B | $22.7B |
| 45.0% | $1.5B | $7.6B | $15.3B | $22.9B | $38.2B |
| 95.0% | $3.6B | $18.2B | $36.5B | $54.7B | $91.1B |
| 200.0% | $14.6B | $72.9B | $145.8B | $218.7B | $364.5B |
| 200.0% | $14.6B | $72.9B | $145.8B | $218.7B | $364.5B |
| 200.0% | $14.6B | $72.9B | $145.8B | $218.7B | $364.5B |
| 200.0% | $14.6B | $72.9B | $145.8B | $218.7B | $364.5B |
| 200.0% | $14.6B | $72.9B | $145.8B | $218.7B | $364.5B |
Projected 2026 valuations range from $720M at conservative growth (10%) and multiple (1x) to $364.5B in an aggressive scenario (200% growth, 25x multiple), reflecting both significant upside potential and execution risk in Lacework's trajectory as a cloud security platform provider.
Bear, Base, and Bull Cases: 8x, 12x, 16x
To provide a structured analysis of Lacework's potential trajectories, we've developed bear, base, and bull case scenarios using 8x, 12x, and 16x multiples respectively. These cases reflect varying market conditions, competitive dynamics, and execution capabilities that could impact the company's growth and valuation.
| Scenario | 2026 Growth Rate (%) | Multiple |
|---|---|---|
| Bear 🐻 | 15% | 8 |
| Base 📈 | 90% | 12 |
| Bull 🚀 | 150% | 16 |
Growth assumptions span from a conservative 15% in the bear case to an ambitious 150% in the bull case, with corresponding multiples of 8x to 16x. Even the bear case reflects significant growth potential, while the bull scenario assumes continued strong execution and market leadership in cloud security.
| Bear 🐻 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | $60M | $150M | $312M | $513M | $703M | $809M |
| Growth | 200.00% | 150.25% | 107.50% | 64.75% | 37.05% | 15% |
| Base 📈 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | $60M | $162M | $398M | $873M | $1.8B | $3.4B |
| Growth | 200.00% | 170.42% | 145.00% | 119.58% | 103.11% | 90% |
| Bull 🚀 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|
| Revenue | $60M | $172M | $473M | $1.2B | $3.2B | $8B |
| Growth | 200.00% | 186.55% | 175.00% | 163.45% | 155.96% | 150% |
Our analysis of Lacework's potential trajectories reveals significant variance in growth rates and corresponding valuations based on market conditions and execution success
- In the bear case, Lacework's growth decelerates to 15% by 2026, resulting in a $6.5B valuation ($809M revenue at 8x multiple)
- In the base case, the company maintains stronger momentum with 90% growth, reaching a $40.4B valuation ($3.4B revenue at 12x multiple)
- In the bull case, Lacework achieves dominant market position with 150% growth, commanding a $127.5B valuation ($8B revenue at 16x multiple).
| Scenario | 1. Bear 🐻 | 2. Base 📈 | 3. Bull 🚀 |
|---|---|---|---|
| 2021 Revenue | $60M | $60M | $60M |
| 2021 Growth Rate (%) | 200% | 200% | 200% |
| 2021 Multiple | 8 | 12 | 16 |
| 2021 Valuation | $480M | $720M | $960M |
| 2026 Revenue | $809M | $3.4B | $8B |
| 2026 Growth Rate (%) | 15% | 90% | 150% |
| Multiple | 8 | 12 | 16 |
| 2026 Valuation | $6.5B | $40.4B | $127.5B |
The uncertainty around these three cases depends primarily on Lacework's ability to penetrate enterprise markets, maintain technological differentiation against competitors like Wiz and Palo Alto Networks, and successfully expand their TAM through new product offerings built on their core data mapping capabilities.
- In the Bear case: Lacework struggles to move upmarket against competitors like Wiz and Palo Alto Networks, while the cooling venture market forces a down-round that impacts their ability to attract talent and maintain their aggressive growth trajectory.
- In the Base case: Lacework successfully maintains its growth trajectory by expanding its enterprise customer base while leveraging its ML-driven platform to consolidate spend from multiple point solutions, achieving strong but not dominant market position in cloud security.
- In the Bull case: Lacework successfully executes on its TAM expansion strategy by leveraging its core data mapping capabilities to launch new product offerings across identity management and network security, while maintaining its technological advantage in multi-cloud security to become the dominant platform in the space.
These final valuations demonstrate the significant range of potential outcomes for Lacework. Even the bear case projects a substantial valuation of $6.5B in 2026, while the bull case at $127.5B would position Lacework as a dominant force in cloud security.
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